We don't have a bill, but the White House has released the basic outline of what it wants in new employment legislation:
I. THREE KEY AREAS FOR ACCELERATING JOB GROWTH
- Helping Small Businesses Expand Investment, Hire Workers and Access Credit.
· Tax cuts to support additional business investment next year – with a particular focus on struggling small businesses – with much of the cost recouped over time.
· Zero capital gains for small businesses: To encourage investment by small businesses and improve their access to capital, the Administration is calling for a one-year elimination of the tax on capital gains from new investments in small business stock. The Recovery Act allowed a 75% exclusion from capital gains taxes on small business investments.
· Extension of enhanced expensing provisions for small businesses: The Administration is also calling for the extension through 2010 of the Recovery Act provision that allows small businesses to immediately expense up to $250,000 of qualified investment.
· Extension of Recovery Act bonus depreciation tax incentive: To give businesses an incentive to invest, the Administration is calling for extending the Recovery Act provision that accelerates the rate at which business can deduct the cost of capital expenditures.
· A new tax cut for small businesses to encourage hiring in 2010.
· Eliminating fees and increasing guarantees for small businesses that borrow through major SBA programs in 2010.
Basically tax cuts. Sigh.
I'm not one of those people who believes business decisions are driven by taxes. Taxes are more an afterthought after I look at the central point: can I buy or make stuff cheap and sell it for a profit? That is the point of business. People don't start businesses to get tax credits. So, I am unsure of these sorts of fiscal measures. I don't think they do anything but put slightly more money into the hands of people who are already making money.
- Investing in America's Roads, Bridges and Infrastructure
· Additional investment in highways, transit, rail, aviation and water. The President is calling for new investments in a wide range of infrastructure, designed to get out the door as quickly as possible while continuing a sustained effort at creating jobs and improving America's productivity.
· Support for merit-based infrastructure investment that leverages federal dollars. The Administration supports financing infrastructure investments in new ways, allowing projects to be selected on merit and leveraging money with a combination of grants and loans as was done through the Recovery Act's TIGER program.
Sounds to me like the Sunrise Highway is about to get paved. AGAIN. I would hope that somebody in Washington had learned from Japan that you can't "infrastructure" your way out of this mess. We do need to rebuild infrastructure, but lets not kid ourselves into thinking this will bring robust job growth. Still, I'll take this if Congress is willing. Much better than nothing.
- Creating Jobs Through Energy Efficiency and Clean Energy Investments
· New incentives for consumers who invest in energy efficient retrofits in their homes. Smart, targeted investments in energy efficiency can help create jobs while improving our energy security and saving consumers money. The President today called on Congress to consider a new program to provide rebates for consumers who make energy efficiency retrofits. Such a program will harness the power of the private sector to help drive consumers to make cost-saving investments in their homes.
· Expansion of successful oversubscribed Recovery Act programs to leverage private investment in energy efficiency and create clean energy manufacturing jobs. The Recovery Act included historic investments that have helped to build the foundation for a clean energy economy. The Administration supports expanding programs for which additional federal dollars will leverage private investment and create jobs quickly, such as industrial energy efficiency investments and tax incentives for investing in renewable manufacturing facilities in the U.S.
NOW were talking! Doing things that spawn new industries. The best parts of the Recovery Act were those investments in green R&D and high speed rail. THAT will get you new industries, and with new industries come new jobs. This whole bill should basically double the parts of the Recovery Act that make the needed long term investments in new American industries.
II. A FISCALLY RESPONSIBLE APPROACH TO JOB CREATION THROUGH STEWARDSHIP OF TARP AND OVERALL FISCAL DISCIPLINE
These steps are part of the President's overall approach to fiscal discipline. This includes:
· Freeing up resources from stabilizing Wall Street and putting them to work on Main Street. Because of the Administration's stewardship of the TARP program – combined with our broader efforts to revive the economy – we now expect the cost to be at least $200 billion less than anticipated as recently as August.
I agree that the administration has been a good steward of the TARP monies. We had suspected earlier this year that they would have to come to Congress for an additional $500 billion, but it turns out we didn't need to spend all of the $700 billion authorized by Bush. So, if they want to seek authorization to use $200 billion in the kitty for this bill, fine. As long as they don't cut out the best parts of the Recovery Act.
III. AN ONGOING FOCUS ON JOB CREATION
In addition to the proposals outlined above, the Administration will be working with Congress to ensure that those hit hardest by this economic crisis continue to receive the support they need. This includes: extending unemployment insurance for Americans who are struggling to find jobs, extending the Recovery Act provision that helps out-of-work Americans keep their health insurance through COBRA, providing an additional $250 Economic Recovery Payment to our seniors and veterans, and taking steps to ensure that state and local governments are not forced to lay-off teachers, police officers and other key personnel at this critical time.
Transfer payments.
Not the sort of bill i'd write, which would either be a Meteor Blades type approach or my best idea: a $500 billion national innovation bank w. direct lending to small entrepreneurs all over the country along the lines of Grameen Bank.
Overall, I give it a C. But in this economy, I'll take whatever I can get.